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HAL vs. FTI: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Oil and Gas - Field Services sector might want to consider either Halliburton (HAL - Free Report) or FMC Technologies (FTI - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Halliburton has a Zacks Rank of #2 (Buy), while FMC Technologies has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that HAL is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
HAL currently has a forward P/E ratio of 14.55, while FTI has a forward P/E of 23.47. We also note that HAL has a PEG ratio of 1.47. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. FTI currently has a PEG ratio of 1.50.
Another notable valuation metric for HAL is its P/B ratio of 2.63. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, FTI has a P/B of 8.34.
These metrics, and several others, help HAL earn a Value grade of B, while FTI has been given a Value grade of C.
HAL sticks out from FTI in both our Zacks Rank and Style Scores models, so value investors will likely feel that HAL is the better option right now.
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HAL vs. FTI: Which Stock Is the Better Value Option?
Investors looking for stocks in the Oil and Gas - Field Services sector might want to consider either Halliburton (HAL - Free Report) or FMC Technologies (FTI - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Halliburton has a Zacks Rank of #2 (Buy), while FMC Technologies has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that HAL is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
HAL currently has a forward P/E ratio of 14.55, while FTI has a forward P/E of 23.47. We also note that HAL has a PEG ratio of 1.47. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. FTI currently has a PEG ratio of 1.50.
Another notable valuation metric for HAL is its P/B ratio of 2.63. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, FTI has a P/B of 8.34.
These metrics, and several others, help HAL earn a Value grade of B, while FTI has been given a Value grade of C.
HAL sticks out from FTI in both our Zacks Rank and Style Scores models, so value investors will likely feel that HAL is the better option right now.